Herbert J. Abbs and Peter J. Wisner appeal the United States Court of Appeals for Veterans Claims (“Veterans Court”) April 14,1999 decision denying their application for attorney fees pursuant to the Equal Access to Justice Act (“EAJA”), Pub.L. No. 96-481, Tit. II, 94 Stat. 2321, 2327 (1980), codified at 28 U.S.C. § 2412. Then- application followed our reversal of a ruling of the Veterans Court in an unrelated case. We heard oral argument in this appeal on December 6, 2000. Because the decision of the Veterans Court was based upon a correct construction of the EAJA, we affirm the Veterans Court decision. Because this appeal is frivolous as filed and as argued, however, we impose sanctions pursuant to Fed. R.App. P. 38 and hold appellants’ attorney personally liable to the United States for its costs excluding attorney fees incurred in defending this frivolous appeal.
Background
The facts of Wisner’s and Abbs’ cases are substantially similar. On April 8, 1997, the Board of Veterans’ Appeals (“Board”) found that Wisner had failed to present “new and material” evidence to reopen a previously and finally disallowed claim of service-connection for a psychiatric disorder. On May 5, 1997, Wisner appealed pro se the Board’s decision. In a separate but related case, on August 15, 1997, Abbs appealed pro se the Board’s May 20,1997 decision finding that new and material evidence had not been presented to reopen his previously and finally disallowed claim for service-connection for a chronic nervous disorder. In both decisions, the Board relied on the test for materiality set forth in
Colvin v. Denvinski,
On September 16, 1998, while the appeals were pending before the Veterans Court, this court, in Hodge v. West, 155 *1344 F.3d 1356 (Fed.Cir.1998), overruled the Colvin test and held that the Secretary’s definition of new and material evidence as set forth in 38 C.F.R. § 3.156(a) must be applied in determining whether a veteran has submitted new and material evidence. Id. at 1361. On October 2, 1998, Wisner filed a motion to remand his case back to the Board in light of our decision in Hodge. On October 7, 1998, the Veterans Court vacated the Board’s decision and remanded the case. On October 8, 1998, the Veterans Court granted the Secretary’s unopposed motion to vacate and remand Abbs’ case to the Board.
Wisner filed a timely motion in the Veterans Court for an award of reasonable attorney fees under the EAJA in the amount of $4,627.76 on October 30, 1998. On November 5, 1998, Abbs filed an application seeking attorney fees in the amount of $3,839.50.
On December 29, 1998, the Veterans Court,
sua sponte,
ordered that Wisner’s and Abbs’ cases be consolidated for concurrent consideration of the appellants’ applications for attorney fees and expenses and submitted to a panel without oral argument. Appellants alleged that because the Veterans Court’s position in deciding
Colvin
directly contravened the Supreme Court’s, decision in
Chevron v. Natural Res. Def. Council,
On April 14, 1999, a three judge panel of the Veterans Court denied appellants’ request for attorney fees under the EAJA. The Veterans Court held that the Veterans Court is not an “agency” of the United States for EAJA purposes. The court did not reach the question of whether the Veterans Court’s Colvin materiality test regarding the reopening of previously and finally disallowed claims viewed in light of 38 C.F.R. § 3.156(a) was “substantially justified.” Appellants filed a timely appeal to this coúrt on July 14, 1999. Both appellants are represented by the same attorney, Mr. Kenneth Carpenter, as they were before the Veterans Court.
Analysis
Pursuant to 38 U.S.C. § 7292(a) (1994), we have jurisdiction to review a decision of the Veterans Court only “with respect to the validity of any statute or regulation ... or interpretation thereof (other than a determination as to a factual matter) that was relied on by the [Veterans Court] in making its decision.” The Veterans Court’s construction of a statute, such as
*1345
the EAJA, is reviewed de novo.
Epps v. Gober,
A. Sanctions can be imposed under Fed. R.App. P. 38 when an appeal is “frivolous as filed” or “frivolous as argued.”
On December 1, 2000, we issued an Order to appellants to show cause why their appeal is not sanctionable under Fed. R.App. P. 38. Fed. R.App. P. 38 provides that “[i]f a court of appeals determines that an appeal is frivolous, it may, after a separately filed motion or notice from the court and reasonable opportunity to respond, award just damages and single or double costs to the appellee.”
Our court has identified two types of appeals that may be deemed frivolous. An appeal is held to be “frivolous as filed” when an appellant grounds his appeal on arguments or issues “that are beyond the reasonable contemplation of fair-minded people, and ‘no basis for reversal in law or fact can be or is even arguably shown.’”
State Indus., Inc. v. Mor-Flo Indus., Inc.,
We are reluctant to impose sanctions. As we said in
Finch,
“an appellate court must be mindful of the possibility that awarding damages and costs could have an undue chilling effect on the behavior of later litigants.”
Finch,
B. An award of sanctions is appropriate when a party grounds its appeal on an argument that is unsupported by authority and contradicted by the clear and explicit language and legislative history of the statute.
Appellants’ appeal meets the standard for an appeal that is both frivolous as filed and as argued. Appellants cite inapplicable authority, distort cited authority, and make irrelevant and illogical arguments.
See, e.g., Finch,
1. Appellants fail to provide any case law or statutory support whatsoever for their argument that the Veterans Court is an “agency” as defined in the EAJA.
The EAJA states:
Except as otherwise specifically provided by statute, a court shall award to a prevailing party other than the United States fees and other expenses ..., incurred by that party in any civil action (other than a case sounding in tort), including proceedings for judicial review of agency action, brought by or against the United States or any agency or any officer of the United States acting in his or her official capacity in any court having jurisdiction of that action, unless the court finds that the position of the United States was substantially justified or that special circumstances make an award unjust.
28 U.S.C. § 2412(d)(1)(A) (emphasis added). The EAJA explicitly defines its terms. For purposes of the EAJA, the “United States” includes “any agency and any official of the United States acting in his or her official capacity.” Id. § 2412(d)(2)(C). The Veterans Court, by contrast, is specifically denominated a “court.” Id. § 2412(d)(2)(F). The “position of the United States” includes the “position taken by the United States in the civil action” as well as “the action or failure to act by the agency upon which the civil action is based.” Id. § 2412(d)(2)(D).
Appellants cite neither case law nor statutory text in support of their argument that the Veterans Court is an “agency” for purposes of the EAJA. In their principal brief, appellants argue:
[I]t is clear that the [Veterans Court] was created by Congress for the sole purpose of providing judicial review of the administrative decisions of the [Department of Veterans Affairs (“DVA”) ]. Congress created the [Veterans Court] to monitor the DVA and the [sic] ensure that the Agency complied with the statutes and regulations governing the vet *1347 erans benefit scheme. As such, the [Veterans Court], like the DVA, is an “Agency” of the United States as contemplated by the EAJA statute.
Further, courts and administrative agencies are not to be regarded as wholly independent and unrelated instru-mentalities, as each act in performance of their prescribed statutory duty. Even more so, when the Court’s sole purpose and jurisdiction is mandated by Congress is to provide judicial review of a specific agency’s decision. Meaning, that if the DVA and the [Veterans Court] can not be regarded as wholly independent and unrelated instrumental-ities and the [Veterans Court] is clearly recognized as an Agency of the United States under the EAJA, then it naturally follows that the [Veterans Court] also constitutes an Agency of the United States pursuant to EAJA.
Brief of Appellant at 17, Abbs v. West (No. 99-7112); Brief of Appellant at 18, Wisner v. West (No. 99-7113) (emphasis added). Thus, appellants argue, in effect, that the DVA and the Veterans Court are indistinguishable and therefore each must equally be considered an “agency.” Appellants cite no case law or statutory support whatsoever for their argument that the DVA and the Veterans Court are either “dependent” or “related” instrumentalities, much less that they are so related as to be indistinguishable and thus share the same statutory category of “agency.” Appellants also cite no authority for their proposition that a court, specifically the Veterans Court, is an “agency” that is to be considered a constituent part of the DVA for purposes of the EAJA. Indeed, the structure and language of the EAJA are plainly to the contrary. The appellants’ bold assertion that “the [Veterans Court] is clearly recognized as an [A]gency of the United States” is flatly false. Id.
2. Appellants’ argument that the Veterans Court is an “agency” for purposes of the EAJA is actually contrary to the clear and express language of the statute.
Appellants’ argument that the Veterans Court is an “agency” is contrary to the language of the statute. As the Veterans Court appropriately noted, it is explicitly included in the lists of “courts” in 28 U.S.C. § 2412(d)(2)(F) (as amended by the Veterans Programs Enhancement Act of 1998, Pub.L. No. 105-368, § 512(b)(1)(B), 112 Stat. 3315, 3342 (1998)) (“‘court’ includes ... the United States Court of Appeals for Veterans Claims.”). Congress specifically defined the word “courts” to include the Veterans Court to make clear that petitioners before the Veterans Court could recover attorney fees. In 1992, in
Jones v. Derwinski,
The clear language of the statute also explicitly contradicts the appellants’ interpretation that the Veterans Court is an agency that makes a decision “upon which the civil action is based.” As the Veterans Court correctly said, “the civil action is one against the VA (through the Secretary) and is brought
in
[the Veterans Court ] not
as to
actions
of
[the Veterans Court.]” (emphasis in original) Indeed, a determination of whether there is a “substantial justification” for the United States’ or an agency's action involves an inquiry into the reasonableness of its administrative decision or litigating position, not the court’s review thereof.
See Broad Ave. Laundry & Tailoring v. United States,
Appellants argue in their Reply Brief that just because the Veterans Court is denominated a “court” pursuant to 28 U.S.C. § 2412(d)(2)(F) does not mean that it is “excluded from the definition of an agency acting in an official capacity.” Reply Brief of Appellants at 1-2. To support such an illogical argument, appellants again resort to word games. Appellants write:
The Appellee’s second argument is that the term ‘agency’ is generally understood to mean, ‘a governmental department of administration or regulation,’ but not one of adjudication. The Appellants dispute this assertion. An Article I Court is created by an act of Congress to ‘administer’ judicial review of a governmental agency, in this case the Department of Veterans Affairs. The United States Tax Court was likewise created by an act of Congress to ‘administer’ judicial review of the Internal Revenue Service.
Id. at 2 (emphasis added). Appellants simply cite no support for such a broad reading of the term “agency” or such a tortured interpretation of “administer.” In fact, appellants’ argument is contradicted not only by the language, but also by the legislative history of the Veterans Judicial Review Act, Pub.L. No. 100-687, § 402, 102 Stat. 4105 (1988), 38 U.S.C. § 7251. One of the purposes of creating the Veterans Court was to “[ejstablish an independent [cjourt” to review decisions of the Board. H.R.Rep. No. 100-963, at 4 (1988), reprinted in 1988 U.S.C.C.A.N. 5782, 5785 (emphasis added).
*1349 Indeed, appellants’ argument taken to its logical conclusion would require an award of attorney fees under the EAJA whenever a court — even a district court or a specialized trial court, such as the United States Court of International Trade — “administering” judicial review of a decision of an administrative agency later has its interpretation of law or other decision overruled by a higher court. Suppose, for instance, a district court construes a statute as it reviews a decision of the Social Security Administration. If the district court’s interpretation is later overruled by the court of appeals, the district court’s decision might not be deemed “substantially justified,” and the appellant could then recover attorney fees under the EAJA. This is clearly contrary to both the explicit text of the EAJA and its legislative history, as well as the overall statutory scheme. The statute states that a prevailing party may only recover fees and expenses “in any civil action ... brought by or against the United States or any agency ... in any court having jurisdiction of that action.” (emphasis added). The statute does not say that a prevailing party may recover fees and costs “in any civil action ... brought by or against a court ... in any court having jurisdiction of such action.” Indeed, such a reading of the statute would be utterly nonsensical. A court simply cannot “bring” a civil action against a party. Once again, appellants’ argument is illogical and irreconcilable with the statutory text. The winning side “prevails” over its opponent, not the court.
3. The legislative history of the EAJA does not support but indeed refutes appellants’ contention that its provisions apply to purely adjudicatory bodies.
The legislative history of the EAJA supports the clear import of its text that the Veterans Corut is not an “agency” within its meaning. Congress enacted the EAJA to diminish the costs of litigating against the government.
See
H.R.Rep. No. 1418, at 12 (1980),
reprinted in
1980 U.S.C.C.A.N. 4984, 4991 (EAJA’s fee-shifting mechanism is “an instrument for curbing excessive regulation and the unreasonable exercise of Government'authority.”). “A primary purpose in enacting the EAJA ... was to remove obstacles of litigation expenses, including attorneys’ fees, so that litigants may challenge unreasonable
governmental action
and vindicate their rights in court.”
Crooker v. EPA,
Appellants argue in their Reply Brief that the government “cannot extrapolate from the coverage of EAJA liability for actions in the [Veterans Court] that the Article I Court is therefore not an ‘agency’ under EAJA.” Reply Brief of Appellants at 2. Such an argument is a non-sequitur. Moreover, it simply ignores the fundamental principle that waivers of sovereign immunity must be strictly construed in favor of the sovereign.
See Fanning, Phillips & Molnar v. West,
*1350 C. Appellants’ response to this court’s December 1, 2000 Order providing notice that sanctions could be imposed under Fed. R.App. P. 38 was unpersuasive and was itself frivolous.
requested sanctions in this appeal, we are free to award sanctions
sua sponte. See, e.g., Romala,
Ample notice and an opportunity to respond have been provided in this case. We issued an Order on December 1, 2000, and provided appellants an opportunity to respond both by letter and later during oral argument on December 6, 2000. In the Order, we stated that at oral argument, appellants should be prepared to address the clear and explicit authority contrary to their position. We stated:
[A]s noted in the opinion of the [Veterans Court] ..., the clear language of the statute contradicts appellants’ interpretation that the Veterans Court is an “agency,” much less one “against” which action was “brought.” The statute actually distinguishes between “courts” and “agencies” in clear and explicit terms. Further, the court is not a party, but a “civil” tribunal. Finally, the EAJA focuses on the reasonableness of the agency’s “litigating position.” The court, however, has no litigating position.
We also specified that in their briefs, “[appellants [had] cited no authority at all for their proposition that the [Veterans Court] is an ‘agency,’ ... for purposes of the EAJA.”
1. Appellants’ written response to the December 1, 2000 Order was unresponsive and compounded the frivolity of this appeal.
Appellants responded in a letter dated December
1,
2000, which “simply ignored the allegation of frivolity and compounded the misconduct with more frivolous assertions.”
State Indus.,
Appellants cited
Sparks
as being “directly on point” to support their position. In
Sparks,
this court declined Kodak’s request to award sanctions against Sparks for raising arguments because they were rejected by the district court.
Sparks,
Appellants also cited
Abela v. Gustaf-son,
Appellants’ citation to
United States v. 50.50 Acres of Land,
2. Appellants failed to respond to the December 1, 2000 Order at oral argument.
Appellants likewise failed at oral argument to show cause why sanctions should not be imposed. Even worse, appellants simply reiterated the baseless arguments made in their briefs, again without providing any authority supporting their interpretation of the EAJA to include the Veterans Court as an “agency.” Appellants conceded that their interpretation of the EAJA would be a “liberal one” but they provided no reason why such an interpretation is warranted or even arguable when the text of the statute is so explicit, to the contrary, on its face.
Conclusion
We thus order sanctions to be imposed on appellants’ attorney, Mr. Carpenter, and award for the filing and maintenance of so frivolous an appeal the payment by appellants’ counsel personally to the United States the reasonable costs for printing, copying, and the like the United States incurred in defending the appeal before this court.
See Romala,
AFFIRMED — COSTS IMPOSED AS SANCTIONS.
Notes
. In their appeal, appellants had two arguments, one of which has since been abandoned by appellants in light of our decision in
Clemmons v. West,
'. On March 1, 1999, the name of the United States Court of Veterans Appeals was changed to the United States Court of Appeals for Veterans Claims pursuant to the enact-menl of the Veterans Programs Enhancement Act of 1998, Pub.L. No. 105-368, § 511, 122 Stat. 3315, 3341 (1998).
